Christian Rohrbach, president
A-America
It really depends on what price point you’re looking at. It’s vital that companies have product the consumer can vindicate spending their hard-earned dollars on. Consumers are shopping multiple stores. They’re doing that more often. They’re checking multiple stores and multiple price points. So the product really has to sell. The consumer must SEE the value.
Also, housing is obviously a factor, particularly for bedroom, which suffers the most when housing is bad. We need it to improve.
Rodd Rafieha, chief sales officer
Abbyson
I think the big things will be the focus on value for the cost that can come in the form of innovative storage solutions, technology and unique design elements. It’s also the ability to develop product that’s highly curated and a move away from direct “matching suits.”
High-end looking finishes that have natural characteristics and mixed materials will also be important.
Robert Van Hoose, CEO
Big Sandy Superstore, Franklin Furnace, Ohio
At Big Sandy Superstore, we can’t control macro events, so we are working on strengthening our culture, focusing on selling processes that increase our close rate and average ticket, building customer relationships and making sure we are maximizing the opportunities we get. We feel that is the best shot we have for either increasing sales or increasing market share.
Most retailers have a lot of low hanging fruit in these areas. Getting all your salespeople going in one direction is like herding cats, but it is worth the effort, and the ROI is there.
Charlie Malouf, CEO
Broad River Retail, Fort Mill, S.C.
Housing starts, driven by falling interest rates and potentially by a correction in prices. If more people begin to make the decision to move or can afford new homes because of more affordable mortgage rates, and if the housing market picks up, then I think furniture demand will increase along with this uptick.
Andy Hensler, owner
Creative Accents
There’s so much chaos and noise everywhere right now. I think finding connections and meaning behind products will shape the furniture and interior design industry as a whole. I expect our customers to continue seeking solace and peace in their interior environments by curating pieces with deeper, more meaningful connections. Hand-crafted products like Creative Accents luxury rugs fit well into that mix by allowing customers the freedom to personalize unique and one-of-a-kind pieces.
Joe Bright, owner
Dunk & Bright, Syracuse, N.Y.
The biggest change in 2025 will be the resurgence of the housing market. Interest rates will drop and federal, state and local governments will implement programs to solve the housing shortage. This will stimulate home sales and drive demand for home furnishings. The broader economy will “hold on” and avoid a recession, and 2025 will be a better year than 2024 for our industry.
Kyle Muench, executive vice president,
Ergomotion
The consumer’s increased focus on sustainability and eco-friendly materials will likely be the most significant factor shaping the bedding industry in 2025. This shift will drive innovation and force manufacturers to adopt more sustainable practices. Ergomotion is in a leadership position in this regard because our adjustable bases are currently constructed using 85% to 93% of recyclable components and offer zero-standby energy consumption. We have a growing focus on using solar energy, with our primary facility generating 22% of its power needs from photovoltaic sources. We believe that we can support sleep brands and their end consumer while also being good stewards to the planet.
Beyond the focus on sustainability, there is a growing awareness of the connection between sleep quality and overall health which will also contribute to the demand for high-quality sleep solutions.
Taisa Veras Baucum, senior director of marketing
Feizy Rugs
The ability to address interior designers’ needs with white glove service. The designers are driving the industry and that’s not going to change anytime soon.
David Crimmins, vice president of sales
Flexsteel
I think it’s really still all general economic. We have to see an improvement in consumer confidence, a continued slowing in inflation, and we need housing sales to pick up. If those three indicators improve, case goods will improve. If it doesn’t, it’s going to remain a very challenged category.
Case goods are also difficult to innovate. The anti-tip stuff hurt functionality and added costs. Innovation works on motion, but there’s little innovation to be had on case goods, generally.
Bob Naboicheck, CEO,
Gold Bond
A challenge in our industry is that historically some people forget about the past instead of learning from it. Mattress sales have always been driven by housing sales, so I suspect that as the Fed starts to ease up on interest rates, we will start to see a pickup in sales that will breathe new life into our businesses.
I also believe we are going back to a cycle of holiday promotions driving sales. We will need to tap into our creativity with our retail partners to help them be competitive.
Bedding manufacturers have to get over the sugar high of the post-COVID era when consumers were flush with cash, had no place to spend it and poured money into the home furnishings sector. This surge in sales was never something that our industry experienced, so we shouldn’t be surprised to see a sobering of the market.
But there remain many strong areas of the business that I believe will continue to be robust. Luxury mattress sales are holding strong and growing with many retailers, so that is a shiny bright spot. Also, the hospitality sector is hungry for new and better bedding, which translates into another important driver of sales for us. It is nice to see these operators realize that the relationship between the quality of mattress and an improved guest experience is resulting in their willingness to spend more for a more premium product than they have bought in the past.
Kyle Johansen, executive director of merchandising and marketing
HOM Furniture, Coon Rapids, Minn.
I believe interest rates and housing turnover will be key to 2025 being a successful year.
Jeremy Hoff, CEO
Hooker Furnishings
When times are tough, execution becomes even more important. I think companies that have looked in the mirror in a tough time, and actually worked on themselves to get better, are really going to benefit. I think we’ll see who those companies are next year.
Jason Hodge, vice president of sales,
Innovative Sleep Technologies
With soft demand at retail this year, retailers are experiencing slower inventory turnover and are continuing to right-size their stock, causing manufacturers to lag behind retail in regard to orders.
In 2025, the state of the economy will be a key factor in shaping the bedding category’s performance. A rebound in the housing market, driven by stabilizing home prices and lower interest rates, is expected to create new opportunities.
Companies that continue to innovate and bring new products to market will likely benefit. At Symphony Sleep, we have consistently exceeded our forecasts and experienced significant growth by enabling our retail partners to increase average ticket prices, improve attachment rates and maintain strong margins. We’ve achieved this through product innovation and by addressing key gaps in a mature category.
Smart and effective marketing will remain critical, especially as millennials, who are starting families and purchasing homes, become an increasingly important demographic. Embracing AI will also offer significant advantages. Lastly, there’s the upcoming election, which our industry generally welcomes once it’s behind us.
Todd Lehman, president and CEO
Interiors Home, Lancaster, Pa.
In our Central Pennsylvania market, I believe the biggest impact to our business will be the lack of land to build new housing. We live in an area that places high value on preserving farmland, which is directly at odds to residential and commercial development.
David Binke, CEO,
King Koil
Macroeconomic factors are going to drive our industry in the foreseeable future. The downward adjustment of interest rates could be the biggest opportunity for the bedding industry to stimulate growth. Without significant cuts, we will remain in a very stagnant, declining market. If the interest rate relief is strong, I suspect we will see a more buoyant market toward the end of this year and into the next.
The other major news to watch is what happens with the Mattress Firm/TSI deal? If TSI is successful in acquiring Matt Firm, there will be a lot of consternation at wholesale and a lot of potential shifting of product at retail. I think there are a lot of people wait-and-seeing on both the manufacturing and the retail side about what is finally going to be determined.
King Koil has fared better than most in the industry because we sell luxury, high-margin product. We have been able to better absorb some of the headwinds affecting our industry. Dealers who carry our products also realize that they earn higher margins by selling our products, so that has led to more slots on floors for us. We see a further opportunity in investing in innovation and technology, and also focusing on our sustainable products.
Frank Hood, president and CEO
Kingsdown
There are several macro factors that will influence industry performance in 2025. The economy is most likely top of mind for every consumer. How will they be affected by the Federal Reserve interest rate cut of half a percent? Will they be in a better position to buy a new home? Will they feel more secure in their jobs?
Not to lay it all on the Fed’s actions, the results of the presidential election in November will also be in play. Will the outcome of the election create more political turmoil? Or will it create a more stable pathway toward calmer economic times?
I know I have asked a lot of questions in my answer. But I firmly believe that as the Fed eases up on interest rates, we will see an uptick in housing sales, the typical driver to stronger mattress and furniture sales.
Regarding the election, we have weathered this kind of tumult before, so I anticipate consumers will find their footing, particularly with the lower costs to borrow money.
Chris Pelcher, president
Legacy Classic|Modern
For case goods, but really for everything, it’s about getting traffic back into the retail stores. It’s been talked about a lot, with interest rates where they are, the election and all the hope from an interest rate cut.
Even if it’s a psychological impact where the consumer feels better, it’s really what needs to happen. We need the interest rate cut to “unstick” the real estate market at least a little bit for furniture sales.
Tim Donk, vice president of product
Legends Home
Trend-wise in case goods, I’m seeing a strong trend for minimalist looks and natural woods, with simple and clean lines. I think that trend is going to get stronger, and it’ll be the driver.
Oscar Miskelly, CEO
Miskelly Furniture, Pearl, Miss.
- The demand for multifunctional and modular furniture is expected to grow. This trend is driven by smaller living spaces and the desire for adaptable furniture that can fit various needs and room configurations. Modular pieces allow consumers to customize their furniture arrangement, which is particularly appealing in urban areas where space is at a premium (sectionals, motion coming with different layouts).Sleeper sofas continue to grow in popularity for the same reason.
- There’s a growing preference for furniture that reflects personal style and adapts to changing trends. Offering a wider range of colors and customizable options can cater to individual tastes and evolving home aesthetics. This trend might also extend to materials and finishes, providing even more ways for consumers to personalize their furniture (some of the exit interviews we conduct for a customer not purchasing has been due to not having the colors they want to see).
- With housing affordability being a challenge, especially for larger homes, consumers are likely to seek furniture solutions that maximize space and functionality. Furniture that can adapt to different uses or that offers built-in storage solutions will be in demand. This trend is also influenced by the desire to make the most of existing space rather than investing in larger or more expensive homes.
- Bluetooth and other wireless technologies are becoming more integrated into furniture design. This includes features like adjustable lighting, speakers, and even furniture that can be controlled via apps. These advancements enhance convenience and user experience, aligning with broader tech trends.
- The growth of online shopping and direct-to-consumer business models has transformed how people buy furniture. This trend is likely to continue, with more companies offering online customization tools, virtual room planners, and direct shipping options (Flexsteel, Tempur-Sealy).
Overall, the furniture retail landscape in 2025 will likely be shaped by a combination of technological advancements, shifting consumer preferences for customization and multifunctionality, and a growing emphasis on sustainability and space efficiency. I believe there will be a lot of pent up in 2025 that will lead to an uptick in furniture retail also due to declining interest rate environment that will see mortgage rates back in the 5% range.
Brittyn Halber, digital marketing and PR coordinator
Quorum International – Lavin Rugs
Our focus is on deeply understanding and responding to the emotions and desires of the end consumer. By remaining agile and adapting our assortment, design, color choices, materials, and key benefits based on consumer feedback, we can evolve as leaders in the market, trend and design. However, our unwavering commitment to quality and craftsmanship is the foundation that underpins all our efforts.
Success is built on solid relationships, strategic partnerships and exceptional customer service. To achieve this, we leverage collaborations with top industry designers and influential voices across social media, giving us direct access to consumer insights. In addition, our own social media platforms serve as powerful channels for engagement, where we actively encourage customer participation through interactive content like Q&A sessions, “Like this or that” polls and Before/After comparisons. These tools enable us to gather real-time feedback, helping us stay in tune with consumer preferences and deliver products that resonate with our audience.
Brian Dengler, chief innovation officer,
Serta Simmons Bedding
If interest rates continue to drop as expected, this should help stimulate the housing market, with consumers ultimately upgrading their bedding needs. That will be a major factor in this category in 2025.
Additionally, at Serta Simmons Bedding, we continue to focus on solving consumers’ unmet needs, including thermal management, ache and pain relief, and partner sleep, and we will be continuing to develop solutions and technologies that address these needs in 2025.
Tom Zaliagiris, senior vice president of sales
Sherrill Furniture
First, I would expect the geopolitical climate to have a huge impact on the entire case goods landscape. Aesthetically, we are seeing much more demand for custom finish options. Specifically, a desire for custom color work so that the case piece can coordinate with the wallpaper, rug, or accent fabric and pull the entire room together.
Sherrill Furniture continues to operate a domestic case goods facility in Hickory, N.C., which allows our brands to capitalize on this demand.
Bryan Smith, CEO
Southerland
The one big thing that will shape 2025 is the “change in uncertainty.” During good times and bad times, consumers have always purchased bedding, but during uncertain times, consumers sit on their wallets. Bedding purchases may be postponed; therefore, if a consumer is uncertain about their job, inflation of necessary items like food, gas, energy, etc., the political climate, world peace, and other major unknowns that are publicized in the news and social media feeds, consumers sit on their wallets and postpone the purchase.
Therefore, the change in uncertainty will prove to shape 2025 more than any one single thing. When the election is over, the job market settles, interest rates settle, war or peace is in focus, etc., consumer confidence may improve or decline, but when there is more certainty about where we are and where we are headed, consumers will spend.
The average ticket will increase or decrease based on where they think we are headed, but unit volume will improve. If we stay in a chaotic, herky-jerky environment, unit volume will stay muted.
The fear of the uncertain halts spending. While I cannot predict the future, what I can say is that units in the bedding category will recover when the consumer is more certain about their life, whether it is good or bad.
Nick Bates, president and CEO,
Spring Air International
I believe 2025 is going to be a very strong year for our industry and Spring Air. The nation seemingly ducked a recession, and the housing outlook is brighter for the next 12 months. More activity in the housing sector because of lower interest rates will throw some fuel onto the fire for us. Additionally, we are seeing a very strong bump from the hospitality part of the business, which has really amped up this past year. We are doing more deals with major chains, and we see quite a robust pipeline of new business for Spring Air from this sector.
I believe another factor to watch is the outcome of the Tempur Sealy-Mattress Firm merger. Regardless of which way the FTC rules, there will be fall out in the mattress industry, so we need to prepare for a variety of eventualities.
Where I feel Spring Air has an incredible edge is that we are a consortium of the strongest remaining independent factories in this country with a commitment of working together to provide the best quality and service to our retailers. Actual owners make a difference. The pride and the attention to running their regional businesses are unmatched by conglomerates. As a result, our dealers know that they are getting the best possible service and attention. As other licensee networks wain, Spring Air is growing year over year.
Michael Galloway, vice president of marketing
Star Furniture, Houston
Several factors are set to influence the furniture industry in 2025, impacting consumer behavior and market dynamics.
Interest rates will significantly affect the industry. Higher rates could reduce consumer spending on furniture, while lower rates might encourage investment and expansion.
Political stability and policy decisions, such as trade policies and environmental regulations, will impact production costs and supply chains. Stricter regulations could increase costs but also drive sustainable practices.
Retailers must adapt to a multi-generational customer base: Gen Z is motivated by sustainability; they favor upcycling and repurposing furniture. Boomers are less influenced by sustainability, they prioritize comfort, quality, and brand loyalty.
Issues between Mattress Firm and Tempur-Sealy could disrupt product availability and pricing, highlighting the need for strong partnerships and contingency planning.
The furniture industry in 2025 will be shaped by economic conditions, political outcomes, and evolving consumer preferences. Adapting strategies to these factors will be key to thriving in this dynamic environment.
Alex Wright, vice president
Wright’s Furniture & Flooring, Dieterich, Ill.
The administration will be a major influence on supply chain and international sourcing.